How it Works
Why do we use real estate tokenization and how does it work?
The Process
How Does the OWR Invest Tokenization Marketplace Work?
At OWR Invest, we use blockchain technology to tokenize real estate projects, making them more accessible to a broader range of investors, bringing together real-world assets and cutting-edge finance, making property investment more democratic, transparent, and efficient.
Here’s how we do it:
- Project Evaluation
First, we evaluate the land or development project to ensure it meets all legal, technical, and market criteria. This includes checking licences, viability, and projected returns. - Structuring & Tokenization
Once approved, the project is legally structured and digitally “tokenized”—meaning it’s divided into small, blockchain-based digital shares (tokens). Each token represents a fraction of the project’s value or future income. - Project Launch
The tokenized project is listed on our online platform. Here, traditional (TradFi) and decentralized (DeFi) investors can analyse, and purchase tokens. - Funding the Project
As investors buy tokens, funds are raised to finance the project’s development. This method opens up access to capital without relying solely on banks or large institutional investors. - Returns & Ownership
Depending on the project type, investors may receive returns through rental income, profit-sharing, or value appreciation—all tracked transparently via smart contracts on the blockchain.
Frequently Asked Questions
What is Tokenization?
Tokenization is the process of converting rights to a real estate asset into a digital token on a blockchain. This allows for fractional ownership, making it easier and more affordable for investors to buy into real estate. Benefits include increased liquidity, lower entry costs, and the ability to diversify investment portfolios.
What Are the Financial Requirements?
The minimun investment can vary from project to project. For each project 100.000 property tokens are created. OWR invest is only offering projects with a value less than 8 million Euros. Therefore the price of one token can not exceed the value of 80 Euros. And one token is the minimal investment requirement.
What Returns Can I Expect?
Returns are depending on the specific project and can vary from 5% – 15% APY. The returns come from rental income generated by the tiny house resort or potential appreciation in the property’s value. Projections are based on market analysis and historical data, but as with any investment, returns are not guaranteed and depend on market conditions and management efficiency.
How Is the Property Managed?
How the resorts are being managed is the responsibility of the landowner. OWR Invest is evaluating all projects if they are viable before they are allowed on the platform. Having an operating strategy is one of the key criterias for this evaluation. As this is also an important criteria for every investor, we recommend to the landowner to work with a professional management company.
What Are the Risks Involved?
LIke in any investment there are risks. They include market volatility, regulatory changes, and potential liquidity issues of the resort. OWR Invest is auditing our project owners every quarter to make sure the projects meet their targets. The project owners are required to communicate any deviation from their planned performance to all investors.
What Are the Legal and Regulatory Considerations?
CMVM is the authority that supervises the activity of OWR invest. As this is the first real estate token projects in Portugal we are working closely with CMVM and are making sure we meet all current and future regulations. Therefore our process mighte evolve over time.
What Are the Tax Implications?
Tax implications can vary based on the investor’s country of residence and the tax laws applicable in Portugal. Investors should consult with a tax advisor to understand potential tax liabilities, including capital gains tax and income tax on earnings.
Who is responsible for the project/resort that the tokens represent?
The token that is purchased is a contract between token buyer and landowner. The latter is responsible for meeting the project goals that are communicated before the purchase.